Manual Review Rate

The manual review rate refers to the percentage of cases or transactions that require human intervention to evaluate, verify, or make a decision, much like a wise elder who must step in to resolve a complex situation. In industries such as finance, e-commerce, and insurance, manual review is often necessary when automated systems are unable to confidently determine the appropriate course of action or when there is a need for a higher level of scrutiny. While manual review can provide a valuable safeguard against errors and fraud, it can also be time-consuming and labor-intensive, making it important for organizations to strike a balance between automation and human intervention.

Example

An e-commerce company uses an automated fraud detection system to screen online transactions. The system flags potentially fraudulent transactions based on predefined rules and algorithms. However, not all flagged transactions are clear-cut cases of fraud, and some require further investigation. In this scenario, the manual review rate represents the percentage of transactions that require human analysis to determine their legitimacy. By monitoring the manual review rate, the company can assess the effectiveness of its automated fraud detection system and identify opportunities for improvement, ultimately reducing the burden on human reviewers and enhancing overall operational efficiency.